The IBM Tivoli® Monitoring V6.1 solution is the next generation of IBM Tivoli's family of products
that help monitor and manage critical hardware and software in distributed environments.

Products included in the IBM Tivoli Monitoring V6.1 solutions include:

IBM Tivoli Monitoring V6.1

IBM Tivoli Monitoring for Databases V6.1

IBM Tivoli Monitoring for Messaging and Collaboration V6.1

IBM Tivoli Monitoring Active Directory Option V6.1

IBM Tivoli Universal Agent V6.1

The major enhancements of this release include:

Ease of use  The new operator user interface to help users to quickly isolate and resolve
potential performance problems

Visualization of information  Visibility into the monitoring infrastructure focusing on both
performance and availability management

Increased breadth of monitoring  More critical resources and performance metrics across disparate
platforms throughout the enterprise

Reduced total cost of ownership and improved time to value  Simplified installation,
configuration, and lightweight agent rule deployment, with self-monitoring capabilities to help you
reduce total IT operational costs

Automated programmatic upgrade of Distributed Monitoring V3.7

Integration of products and workflows  The Tivoli Enterprise Portal bringing together
monitoring and management of both mainframe and distributed platforms to a single console,
including, tighter integration with Tivoli Event Console, and extensions to IBM Tivoli Monitoring V5
monitoring infrastructures

Tivoli software from IBM raises the bar for monitoring many of the leading operating systems,
databases, and applications with our next generation of IBM Tivoli Monitoring solutions. Products
included in the IBM Tivoli Monitoring V6.1 solutions include:

IBM Tivoli Monitoring V6.1

UNIX®

Microsoft Windows

i5/OS

Linux

Linux on z

IBM Tivoli Monitoring for Databases V6.1

DB2®

Oracle

Microsoft SQL

Sybase

IBM Tivoli Monitoring for Messaging and Collaboration V6.1

Microsoft Exchange

IBM Tivoli Monitoring Active Directory Option V6.1

IBM Tivoli Monitoring V6.1:
IBM Tivoli Monitoring V6.1 is built on a new lightweight, highly scalable architecture that is
comprised of various components including the Tivoli Enterprise Portal, the Tivoli Enterprise Portal
Server, the Tivoli Enterprise Management Server, and monitoring agents. The Tivoli Enterprise
Portal Server manages the contents and GUI presentation of the browser and desktop clients.

Monitoring data from applications and resources from systems and subsystems is collected by the
monitoring agents and are passed on to the Tivoli Enterprise Management Server for data collection,
filtering, correlation, and root cause analysis.

With IBM Tivoli Monitoring V6.1 comes a new Tivoli Data Warehouse component based on a simplified
database structure. The new data warehouse provides configuration and collection improvements. It
delivers data for analysis and reporting through the IBM Tivoli Enterprise Portal. Administrative
tasks for data aggregation, summarization, and pruning of historical data ease the management of
long term data.

Portal workspaces:
Helps to quickly pull together metrics, dynamic charts, tables, and graphics while investigating
specific performance problems and availability issues from multiple vantage points across
heterogeneous platforms within the enterprise. Workspaces can be customized and stored to contain
views of critical events and conditions with user-selectable charts and graphs. Personalized
workspaces help users to:

This helps optimize staff productivity and application availability by minimizing the time spent
hunting down the causes of slow performance.

Situations:
IBM Tivoli Monitoring V6.1 features supplied and customizable situations that you can use to detect
and repair problems as they happen. Alerts can be tailored easily to help your environment and
facilitate automatic resolution of recurring problems. Features that help you proactively manage
your environment include:

Out-of-the box supplied situations include a combination of metrics and thresholds to trigger,
identify, notify, and cure problem prevention mechanism. Based on industry best practices, they
allow for a superior and robust management system.

Situation Editor is included to setup your own intelligent alerts and thresholds based on detailed
and/or/logic that gives you the power to create granular notification and eliminate false alarms.

Take Action resolves recurring problems by running built-in scripts, or new scripts which can be
easily created.

Expert Advice  When you receive an alert of a detailed explanation of the problem and potential
fixes, use knowledge our of-the-box or edit the feature to preserve solutions specific to your
environment.

Reporting:
Advanced integrated reporting capabilities for both real-time and historical data collection through
the Tivoli Data Warehouse component. Reports can be customized for user preferences so you see only
the data that is important to you.

Workflow Automation:
Enables you to solve complex system problems automatically using automated system processes called
policies. Policies can be designed using the Workflow Editor, perform actions, schedule work to be
performed by users or automate manual tasks.

c) The new smaller footprint does not require Tivoli Management Enterprise Framework to reduce total
cost of ownership. More efficient data collection results in lower memory usage and CPU Utilization
on managed systems. It does not require the Tivoli Framework for operation and deployment, reducing
operational complexity.

g) Extends the IBM Tivoli Monitoring V 5.x environments. The resource model health and resource
model metrics available from IBM Tivoli Monitoring 5.x environments are visualized into the Tivoli
Enterprise Portal, and integrated into the new Tivoli Data Warehouse, along with the other
capabilities of IBM Tivoli Monitoring V6.1.

Note:
z/Series platform support is separately provided by the IBM Tivoli Monitoring Services on z/OS®
V6.1 program, and is also available for use with the mainframe OMEGAMON® suite of offerings.

i) Integration of the Tivoli Event Console into the Tivoli Enterprise Portal. Situations can send
events directly to the Tivoli Enterprise Console®.

j) Extend monitoring to custom applications and network devices via the Universal Agent. The Tivoli
Universal Agent collects information via numerous data providers, including FILE, SNMP, ODBC, HTTP,
Socket, API, Post, and script to monitor almost any device or application in your network, and can
then reveal consolidated views of performance and availability to help you diagnose and pinpoint
problems more quickly. Perform agentless monitoring by collecting SNMP MIB, and WMI data, or by
receiving monitoring information from scripts and programs running elsewhere in the network. Note:
A separate license must be purchased to use the Tivoli Universal Agent for monitoring where no local
IBM Tivoli Monitoring base endpoint resides.

k) Consolidated resource monitoring and management across the enterprise of mainframe and
distributed environments via a single console, the Tivoli Enterprise Portal. The tighter
integration with the IBM Tivoli Event Console helps bring true end-to-end management, increased
efficiency and effectiveness of Availability Management and supporting processes, of enterprise
systems and applications across the enterprise.

IBM Tivoli Monitoring for Databases V6.1

The IBM Tivoli Monitoring for Databases product consists of four management agents that help ensure
the availability and optimal performance of IBM DB2, Oracle, Microsoft SQL Server, and Sybase
database servers. The use of these features can help to eliminate the typical Database
Administrator (DBA) dilemma of determining what to monitor, when to monitor, and how to interpret
and act upon the monitor results, leaving more time for the DBA to focus on more complex, less
repetitive tasks. The primary objective is to provide routine, consistent monitoring and to help
anticipate and correct problems before database performance and customer confidence is degraded.

All data captured by the management agents, including both real-time and historical, is delivered
through the IBM Tivoli Enterprise Portal browser. Each of the management agents provides an
"out-of-the-box" set of situations (based on IBM best practices) to help provide quick deployment
and activation. Custom situations based on user-definable thresholds, and actions can also be
defined by the DBA.

IBM Tivoli Monitoring for Databases V6.1 can help:

Monitor critical performance data and the status of components of database servers.

Provide real-time status and reporting on the availability and performance of critical database
components through best-practices monitoring of key performance metrics.

Notify administrators and take automated actions. Out-of-box identification of common problems
notifies administrators of potential issues and automates actions to help implement fixes before
problems affect end users.

Through the implementation of the IBM Tivoli Monitoring for Databases product, DBAs can be alerted
when key performance and resource allocation problems are detected, and customers will maximize
their return on investment by assisting them through increasing the efficiency of their IT staff,
improving compliance to service-level objectives, and reducing costs of database system
administration and deployment.

IBM Tivoli Monitoring for Messaging and Collaboration V6.1

IBM Tivoli Monitoring for Messaging and Collaboration builds upon the new IBM Tivoli performance and
availability monitoring architecture, and provides the monitoring and management tools to help
improve performance, availability, and administration for Microsoft Exchange Servers. It includes
support for the new IBM Tivoli Data Warehouse component providing enterprise-wide access to data for
historical and trending analysis, reporting, and graphing.

All data captured by the monitoring agents, including both real-time and historical is delivered
through the IBM Tivoli Enterprise Portal browser component. The incorporation of new ease-of-use
capabilities simplifies product installation, configuration, and the creation and customization of
situations.

The Exchange monitoring agents collect and analyze the following Microsoft Server specific
information:

Address book activity

Cache statistics

Mail data

Connection statistics

Event Service activity

Internet protocols data

Internet mail statistics

MS Mail Connector Message Transfer Agent statistics

MS Mail Interchange data

Message traffic statistics

WEB information

IBM Tivoli Monitoring for Messaging and Collaboration V6.1

Helps simplify application and system management by managing applications and resources across your
system.

Helps to increase profits by providing you with real-time access to reliable, up-to-the-minute data
that allows you to make faster, better informed operating decisions.

Helps to enhance system performance by letting you integrate, monitor, and manage your environment,
networks, console, and mission-critical applications. The monitoring agent alerts the IBM Tivoli
Enterprise Console when conditions in your environment meet threshold-based conditions. These
alerts notify your system administrator to limit and control system traffic. You can view data
gathered by the monitoring agent in reports and charts that inform you of the status of your managed
systems.

Helps to enhance efficiency by monitoring diverse networks. Depending on your Tivoli Enterprise
Portal configuration, you may be able to collect and monitor data across platforms. The monitoring
agent gathers and filters status information at the managed system rather than at the Hub,
eliminating unnecessary data transmission and sending only data that is relevant to changes in
status conditions.

IBM Tivoli Monitoring Active Directory Option V6.1

IBM Tivoli Monitoring Active Directory Option delivers a management agent which helps enable
administrators to ensure the availability and optimal performance of Microsoft Active Directory
Servers. It offers a central point of management for your Microsoft Active Directory service. It
offers a comprehensive means for gathering exactly the information you need to detect problems early
and to prevent them.

Active Directory Monitoring Agent lets you monitor the availability and performance of all the
systems in your enterprise from one or several designated workstations. It also provides useful
historical data that you can use to track trends and to troubleshoot system problems.

Provide real-time status and reporting on the availability and performance of critical Active
Directory server components through best-practices monitoring of key performance metrics.

Notify administrators and take automated actions. Out-of-box identification of common problems
notifies administrators of potential issues and automates actions to help implement fixes before
problems affect end users.

The IBM Tivoli Enterprise Portal is the interface for IBM Tivoli Monitoring products. By providing
a consolidated view of your environment, the Tivoli Enterprise Portal permits you to monitor and
resolve performance issues throughout the enterprise.

Accessibility by people with disabilities

The IBM Tivoli Monitoring products are capable, when used in accordance with IBM's associated
documentation, of satisfying the applicable requirements of Section 508 of the Rehabilitation Act,
provided that any assistive technology used with the product properly interoperates with it.

Section 508 of the U.S. Rehabilitation Act

IBM Tivoli Monitoring is capable as of November 18, 2005, when used in accordance with
IBM's associated documentation, of satisfying the applicable requirements of Section 508 of the
Rehabilitation Act, provided that any assistive technology used with the product properly
interoperates with it.

The IBM Tivoli Monitoring V6.1 solutions provide rapid time to value and reduced total cost of
ownership through a simplified install, new GUI, and framework-less lightweight infrastructure for
the next generation of IBM monitoring products. The new look of IBM Tivoli Monitoring V6.1, is
based on the Tivoli Enterprise Portal, a flexible and easy-to-use browser interface that allows
users to quickly isolate and resolve potential performance problems through consolidated resource
monitoring and management for both distributed and mainframe environments.

Increased breadth of monitoring allows for management of more critical resources and provides more
performance metrics across disparate platforms. The new IBM Tivoli Monitoring V6.1 is a
simplification of creating customer problem signs. It puts complex customization of powerful
monitoring tools into the hands of more operators. This requires significantly less programmer-like
activity and training to successfully customize the product. Programmable upgrade capabilities
simplify and ease the administration for customers who are upgrading to IBM Tivoli Monitoring V6.1
from Distributed Monitoring V3.7.

The ability to manage the enterprise end-to-end from a single easy-to-use portal interface using IBM
Tivoli Monitoring V6.1 strengthens Tivoli's ability to compete in the performance and availability
market against Hewlett-Packard, Computer Associates, BMC, and Microsoft. These solutions also allow
for entry into small- and medium-sized businesses who look for comprehensive, lightweight monitoring
solutions with real-time and historical reporting capabilities delivered through a single portal
interface.

The Publications Center is a worldwide central repository for IBM product
publications and marketing material with a catalog of 70,000 items.
Extensive search facilities are provided. Payment options for orders are
via credit card (in the U.S.) or customer number for 50 countries. A
large number of publications are available online in various file
formats, and they can all be downloaded by all countries free of charge.

PNS enables subscribers to set up profiles of interest by order
number/product number. PNS subscribers automatically receive e-mail
notifications of all new publications defined in their profiles. These
may then be ordered/downloaded from the Publications Center.

Planning information

Customer responsibilities:
Software Maintenance, previously referred to as Software Subscription and Technical Support, is
included in the Passport Advantage Agreement. Installation and technical support is provided by the
Software Maintenance offering of the IBM International Passport Advantage Agreement. This fee
service enhances customer productivity, with voice and electronic access into IBM support
organizations.

Packaging:
The IBM Tivoli Monitoring products in this announcement are distributed with:

Security, auditability, and control

The Tivoli Monitoring Products in this announcement use the security and auditability features of
the operating system software .

The customer is responsible for evaluation, selection, and implementation of security features,
administrative procedures, and appropriate controls in application systems and communication
facilities.

IBM Tivoli Enhanced Value-based Pricing Terminology

IBM Tivoli Enhanced Value-based Pricing:
IBM Tivoli software products are priced using IBM Tivoli's Enhanced Value-based Pricing. The
Enhanced Value-based Pricing system is based upon the IBM Tivoli Environment-Managed Licensing
Model, which uses a managed-environment approach  whereby the
price is determined by what is managed
rather than the number and type of product components installed.

Unlike typical systems management licensing models that require entitlements of specific software
components to specific systems, the IBM Tivoli Environment-Managed Licensing Model provides the
customer flexibility to deploy its IBM Tivoli software products within its environment in a manner
that can address and respond to the customer's evolving architecture. That is, as the architecture
of a customer's environment changes, the customer's implementation of IBM Tivoli software can be
altered as needed without affecting the customer's license requirements (as long as the customer
does not exceed its entitlements to the software).

Under Enhanced Value-based Pricing, licensing and pricing of server-oriented applications are
determined based upon the server's use in the customer's environment. Typically, such applications
are licensed and priced in a manner that corresponds to each installed and activated processor of
the server managed by the IBM Tivoli application to help correlate price to value while offering a
simple solution.

Where a server is physically partitioned, this approach is modified. This partitioning technique is
the approach used with systems that have either multiple cards or multiple frames, each of which can
be configured independently. For servers capable of physical partitioning (for example, IBM's pSeries® Scalable
POWERparallel® Systems servers, Sun Ultra servers, and HP Superdome servers), an entitlement is
required for each processor in the physical partition being managed by the IBM Tivoli application.

For example, assume that a server has 24 processors installed in aggregate. If this server is not
partitioned, entitlements are required for all 24 processors. If, however, it is physically
partitioned into three partitions each containing eight processors, and Tivoli products were
managing only one of the three partitions, then entitlements would be required for the eight
processors on the physical partition managed by the IBM Tivoli application.

For servers with virtual or logical partitions, entitlements are required for all installed and
activated processors on the server. For each IBM Tivoli application managing a clustered
environment, licensing is based on the cumulative number of installed and activated processors on
each server in the cluster for each IBM Tivoli application managing the cluster. Where the cluster
includes physically partitioned servers, the considerations described above concerning physically
partitioned servers apply as well.

Enhanced Value-based Pricing recognizes the convergence of RISC/UNIX and Microsoft Windows/Intel
technologies, in order to simplify the customer's licensing requirements, and to provide a smoother,
more scalable model. Pricing and licensing does not differentiate between non-zSeries server
platforms or operating systems. For some products, this platform neutrality extends to zSeries and
other host servers as well.

IBM Tivoli Enhanced Value-based Pricing terminology definitions

Client Device or Client

Client Device or Client A client device is a computer system that requests the execution of a set of
commands, procedures, or applications from another computer system that is typically referred to as
a server. Multiple client devices may share access to a common server. A client device generally
has some processing capability or is programmable to allow a user to do work.

This optional facility enables additional processing capacity exclusively for Linux workload, with
no effect on the model designation of a zSeries or OS/390® server. Consequently, executing Linux
workload on the IBM Integrated Facility for Linux should not, in most cases, result in any increased
IBM software charges for z/OS, OS/390, VM, VSE, or TPF operating systems/applications. There is, as
indicated, a charge associated with the IFL, and there may also be a charge for applications which
run on the IFL.

Millions of Service Units (MSU)

An MSU is defined as millions of Central Processing Unit (CPU) service units per hour; the measure
of capacity used to describe the computing power of the hardware processors on which S/390® or
zSeries software runs. Processor MSU values are determined by the hardware vendor, IBM, or Software
Compatible Vendors (SCVs).

A server's resources (CPU, memory, I/O, interconnects and buses) may be
divided according to the needs of the applications running on the server.
This partitioning can be implemented with physical boundaries ("Physical
Partitions") or logical boundaries ("Logical Partitions").

Physical Partitions are defined by a collection of processors dedicated
to a workload and can be used with systems that have either multiple
cards or multiple frames, each of which can be configured independently.
In this method, the partitions are divided along hardware boundaries and
processors, and the I/O boards, memory and interconnects are not shared.

Logical Partitions are defined by software rather than hardware and
allocate a pool of processing resources to a collection of workloads.
These partitions, while separated by software boundaries, share hardware
components and run in one or more physical partitions.

Processor

Processor ("per Processor" charging under Full Capacity) In Full Capacity
charging, Proof of Entitlements (PoE) must be acquired for all activated
"processors" (available for use) that are on the server where the Program
or a component of the program is run.

Notes

IBM defines a physical processor in a computer as a functional unit that
interprets and executes instructions. A physical processor consists of
at least an instruction control unit and one or more arithmetic and logic
units.

Multi-core technology allows two or more processors (commonly called
"cores") to be active on a single silicon chip. With multi-core
technology, IBM considers each "core" to be a physical processor. For
example, in a dual-core chip, there are two physical processors residing
on the single silicon chip.

In the zSeries IFL environment, each IFL engine is considered a single
"physical processor."

Threading, a technique which makes a single processor seem to perform as
two or more, does not affect the count of physical processors.

Where "blade" technology is employed, each "blade" is considered a
separate server and charging is based upon the total number of processors
on the blade on which the program is run.

When a server is shipped with six processors, but two of them are
"inactive," four processors are active for the customer.

Managed Processor (charging under Full Capacity in the "managed
environment") charges are based on the active processors on the machines
in the computing environment affiliated with the program rather than on
the server where the program is run.

Notes

IBM defines a physical processor in a computer as a functional unit that
interprets and executes instructions. A physical processor consists of
at least an instruction control unit and one or more arithmetic and logic
units.

Multi-core technology allows two or more processors (commonly called
"cores") to be active on a single silicon chip. With multi-core
technology, IBM considers each "core" to be a physical processor. For
example, in a dual-core chip, there are two physical processors residing
on the single silicon chip.

The program may NOT RUN on SOME OR ALL of the processors for which PoEs
are required by the program's valuation method.

In the zSeries IFL environment, each IFL engine is considered a single
"physical processor."

Threading, a technique which makes a single processor seem to perform as
two or more, does NOT affect the count of physical processors.

Where "blade" technology is employed, each "blade" is considered a
separate server and charging is based upon the total number of processors
on the blades with which the program is affiliated.

Server

A server is a computer system that executes requested procedures,
commands, or applications to one or more clients and/or other devices
over a network. Examples include, but are not limited to, file servers,
print servers, mail servers, database servers, application servers, and
Web servers.

Standby or Backup Systems

For programs running or resident on backup machines, IBM defines three
types of situations: cold, warm, and hot. In the cold and warm
situations, a separate entitlement for the copy on the backup machine is
normally not required and typically no additional charge applies. In a
hot backup situation, the customer needs to acquire another license or
entitlements sufficient for that server. All programs running in backup
mode must be solely under the customer's control, even if they are
running at another enterprise's location.

As a practice, the following are definitions and allowable actions
concerning the copy of the program used for backup purposes:

Cold

A copy of the program may reside, for backup purposes, on a machine as
long as the program is not started. There is no additional charge for
this copy.

Warm

A copy of the program may reside for backup purposes on a machine and is
started, but is idling, and is not doing any work of any kind. There is
no additional charge for this copy.

Hot

A copy of the program may reside for backup purposes on a machine, is
started, and is doing work. The customer must acquire a license or
entitlements for this copy and there will generally be an additional
charge.

Doing work, includes, for example, production, development, program
maintenance, and testing. It also could include other activities such as
mirroring of transactions, updating of files, synchronization of
programs, data or other resources (for example, active linking with
another machine, program, database, or other resource, and so on), or any
activity or configurations that would allow an active hot switch or other
synchronized switch over between programs, databases, or other resources
to occur.

In the case of a program or system configuration that is designed to
support a high availability environment by using various techniques (for
example, duplexing, mirroring of files or transactions, maintaining a
"heartbeat," active linking with another machine, program, database, or
other resource, and so on), the program is considered to be doing work in
the hot situation and a license or entitlement must be purchased.

Value Units

A Value Unit is a metric used to compute license quantities, is program
specific, and is typically only used on products managing zSeries
systems.

Product Web site

A complete list of products and licensing documents is available at Web
site

Passport Advantage:
Through the Passport Advantage Agreement, customers may receive
discounted pricing based on their total volume of eligible products,
across all IBM brands, acquired worldwide. The volume is measured by
determining the total "Passport Advantage points value" of the applicable
acquisitions. Passport Advantage points are only used for calculating
the entitled Passport Advantage discount.

To determine the required Tivoli product configuration under Passport
Advantage, the Tivoli Enhanced Value-based Pricing Model applies.
The customer's environment is evaluated on a per-product basis.

Use the following two-step process to determine the total "Passport
Advantage points value:"

Analyze the customer environment to determine the number of Tivoli
Management Points or other charge unit for a product. The quantity of
each product's part numbers to be ordered is determined by that analysis.

Order the Passport Advantage part numbers. A Passport Advantage point
value, which is the same worldwide for a specific part number regardless
of where the order is placed, is assigned to each Tivoli product part
number. The Passport Advantage point value for the applicable part
number multiplied by the quantity for that part number will determine the
Passport Advantage points for that Tivoli product part number. The sum
of these Passport Advantage points determines the "Passport Advantage
point value" of the applicable Tivoli product authorizations which then
may be aggregated with the point value of other applicable Passport
Advantage product acquisitions to determine the total "Passport Advantage
points value."

The discounted pricing available through Passport Advantage is expressed
in the form of Suggested Volume Prices (SVPs), which vary depending on
the SVP level. Each SVP level is assigned a minimum total Passport
Advantage point value, which must be achieved, in order to qualify for
that SVP level.

Media packs and documentation packs do not carry Passport Advantage
points and are not eligible for SVP discounting.

The following Passport Advantage part number categories may be orderable:

License and Software Maintenance 12 Months  This is the product
authorization with maintenance to the first anniversary date.

Annual Software Maintenance Renewal  This is the maintenance renewal
for one anniversary that applies when a customer renews their existing
coverage period prior to the anniversary date at which it expires.

Software Maintenance Reinstatement 12 Months  This is for customers
who have allowed their Software Maintenance to expire, and later wish to
reinstate their Software Maintenance.

Media packs  these are the physical media, such as CD-ROMs, that
deliver the product's code.

Documentation packs  These contain printed documentation such as the
User's Guide
and
Release Notes
.

Custom Build Registration  this is used with products that have an IBM
zSeries component. Ordering this part number results in a process to
enable the customer to receive the zSeries code via the z/OS Customized
Offerings packaging techniques, that is, ServerPac, SystemPac®, or the
Custom Build Product Delivery Option (CBPDO).

Exceptions to the Environment-Managed Licensing Model:
IBM Tivoli products are priced based on the environment-managed
licensing model and follow the definitions laid out in the
IBM Tivoli Enhanced Value-based Pricing
terminology definitions
section of this announcement, with the following exceptions:

IBM Tivoli NetView®  Count the processors in the server(s) in which IBM Tivoli NetView runs,
plus the number of network nodes managed.

IBM Tivoli Switch Analyzer  Count the processors in the server(s) in which IBM Tivoli Switch
Analyzer runs, plus the number of ports managed.

IBM Tivoli Access Manager for e-business  Count either the number of registered users or the
number of processors in the server(s) in which IBM Tivoli Access Manager for e-business runs, but
not both.

IBM Tivoli Identity Manager  Count either the number of registered users or the number of
processors in the server(s) in which IBM Tivoli Identity Manager runs, but not both.

IBM Tivoli Access Manager for Operating Systems  Count the processors in each system to be
secured that operates with a UNIX-based operating system, including both clients and servers.

Pricing examples

IBM Tivoli Monitoring Family

IBM Tivoli Monitoring Solutions

The IBM Tivoli Monitoring Solutions are a family of programs
that help to monitor and manage distributed environments. The family consists of an IBM Tivoli
Monitoring Program and various IBM Tivoli Monitoring for (specific application) Programs.

The IBM Tivoli Monitoring Program is comprised of the IBM Tivoli Monitoring foundation and various
operating system agents. The IBM Tivoli Monitoring for (specific application) Programs are
solutions that are each comprised of various application agents designed to monitor and manage
specific application area(s) (for example, the IBM Tivoli Monitoring for Databases Program may be
comprised of DB2, MS SQL, Oracle, and Sybase agents).

Each server with an IBM Tivoli Monitoring for (specific application) Program is based on, and
requires licensing and deployment of the IBM Tivoli Monitoring Program as a prerequisite.

Customers are entitled to use any or all of the application agents that are delivered with an IBM
Tivoli Monitoring for (specific application) Program for each server licensed. Licensing is
required for each server which deploys any or all of the application agents provided in a specific
IBM Tivoli Monitoring for (specific application) Program.

The IBM Tivoli Monitoring Solutions are licensed by the Managed Processor.

One 16-way Sun Ultra server with two 8-way physical partitions (only one of which is managed by
Tivoli applications)

One 24-way server

One z800 Server with two uni-Processor IFLs running LINUS (also known as, zLinux or Linux on
zSeries)

Note:
zLinux or Linux on zSeries offerings may not be available for all Tivoli programs. This licensing
example assumes such availability. Linux on zSeries offerings have distinctly orderable part
numbers in Passport Advantage, and should be used when ordering entitlements for IFLs running Linux.

Pricing for programs without a Linux on zSeries offering will exclude the z800 Server entitlement
requirement indicated in the following text:

The customer requires the following entitlements for the IBM Tivoli Monitoring Program (266 managed
processors):

In addition to the core
environment described above (266 Managed Processor entitlement requirement for the IBM Tivoli
Monitoring Program), the customer decides to monitor 10 two-way database Servers (five DB2 and five
Oracle). The customer must obtain the following entitlements:

Note that licensing of the IBM Tivoli Monitoring Program is required for every Server with an IBM
Tivoli Monitoring for (specific application) Program. Therefore, in this example, if the customer's
two database servers are incremental to the Servers described in the core environment, the customer
also requires 20 additional Managed Processor entitlements of the IBM Tivoli Monitoring Program for
the new database servers.

Licensing is valid for any agent supported by the IBM Tivoli Monitoring for (specific application)
Program.

You are only authorized to install the IBM Tivoli Universal Agent V6.1 on the same designated
processors on which you have proof of entitlement to install:

IBM Tivoli Monitoring V6.1 program with rights to use the following monitoring agents (Tivoli
Monitoring with either (a) Windows OS Agent, (b) UNIX OS Agent, (c) UNIX Log Agent, (d) Linux OS
Agent, or (e)i5/OS Agent). You may use the IBM Tivoli Universal Agent solely for the purpose of
monitoring data on the designated processor and not for any other purpose.

Installation and use of the IBM Tivoli Universal Agent, except as provided here, requires the
payment of additional license fees. For example, if you want to use the IBM Tivoli Universal Agent
without purchasing an IBM Tivoli Monitoring V6.1 program, or to monitor devices external to the
designated processor, you must pay a separate license fee.

Example: If the customer wants to use the IBM Tivoli Universal Agent across the following
environment, the customer requires 20 additional Universal Agent Agent "Managed Processor"
entitlements and eight "Client Device" entitlements.

In Full Capacity charging  PoEs must be acquired for all activated "processors" (available for
use) that are on the server where the Program or a component of the program is run.

If there are program components included in the offering whose function is not to be included in the
charge metric, these must be listed in the program-unique terms of the License Information.

IBM defines a physical processor in a computer as a functional unit that interprets and executes
instructions. A physical processor consists of at least an instruction control unit and one or more
arithmetic and logic units.

Multi-core technology allows two or more processors (commonly called "cores") to be active on a
single silicon chip. Unless otherwise announced, with multi-core technology, IBM considers each
"core" to be a physical processor. For example, in a dual-core chip, there are two physical
processors residing on the single silicon chip.

In the zSeries IFL environment, each IFL engine is considered a single "physical processor."

Threading, a technique which makes a single processor seem to perform as two or more, does
NOT
affect the count of physical processors.

Where "blade" technology is employed, each "blade" is considered a separate server and charging is
based upon the total number of processors on the blade on which the Program is run.

Per managed processor charging under Full Capacity

Charges are based on the active processors on the machines in the computing environment affiliated
with the program rather than on the server where the program is run. The managed processors which
require PoEs are defined both in the
Prices
section or the License Information's program-unique terms.

Notes

IBM defines a physical processor in a computer as a functional unit that interprets and executes
instructions. A physical processor consists of at least an instruction control unit and one or more
arithmetic and logic units.

Multi-core technology allows two or more processors (commonly called cores) to be active on a single
silicon chip. With multi-core technology, IBM considers each core to be a physical processor. For
example, in a dual-core chip, there are two physical processors residing on the single silicon chip.

The Program may
NOT RUN
on
SOME OR ALL
of the processors for which PoEs are required by the Program's valuation method.

In the zSeries' IFL environment, each IFL engine is considered a single physical processor.

Threading, a technique which makes a single processor seem to perform as two or more, does NOT
affect the count of physical processors.

Where "blade" technology is employed, each "blade" is considered a separate server and charging is
based upon the total number of processors on the blade(s) with which the Program is affiliated.

Passport Advantage Customer: Media Pack Entitlement Details

Customers with active maintenance or subscription for the products listed below are entitled to
receive the corresponding media pack.

Basic license

Ordering information for Passport Advantage:
Passport Advantage allows you to have a common anniversary date for Software Maintenance
renewals, which can simplify management and budgeting for eligible new versions and releases (and
related technical support) for your covered products. The anniversary date, established at the
start of your Passport Advantage Agreement, will remain unchanged while your Passport Advantage
Agreement remains in effect.

New software purchases will initially include twelve full months of maintenance coverage.
Maintenance in the second year (the first year of renewal) can be prorated to be coterminous with
your common anniversary date. Thereafter, all software maintenance will renew at the common
anniversary date and include twelve full months of maintenance.

Refer to the IBM International Passport Advantage Agreement and to the IBM Software Maintenance
Handbook for specific terms relating to, and a more complete description of, technical support
provided through Software Maintenance.

The quantity to be specified for the Passport Advantage part numbers in the following table is per
managed processor. To order for Passport Advantage, specify the desired part number and quantity.

Warranty:
This program has warranty for a minimum of one year from acquisition from IBM or authorized IBM
Business Partner. The warranty provided to the customer, for at least one year from acquisition, is
access to databases (read Web sites) for program information and FAQs, including any known fixes to
defects, which the customer can download or obtain otherwise and install at leisure.

Money-back guarantee:
If for any reason you are dissatisfied with the program and you are the original licensee,
return it within 30 days from the invoice date, to the party (either IBM or its reseller) from whom
you acquired it, for a refund.

For programs acquired under the IBM International Passport Advantage offering, this term applies
only to your first acquisition of the Program.

For programs acquired under any of IBM's On/Off Capacity on Demand (On/Off CoD) software
offerings,this term does not apply since these offerings apply to programs already acquired and in
use by the customer.

Copy and use on home/portable computer:
No

Volume orders (IVO):
No

Passport Advantage applies:
Yes and through the Passport Advantage Web site at

Software Maintenance, previously referred to as Software Subscription and
Technical Support, is included in the Passport Advantage Agreement.
Installation and technical support is provided by the Software
Maintenance offering of the IBM International Passport Advantage
Agreement. This fee service enhances customer productivity, with voice
and electronic access into IBM support organizations.

IBM includes one year of Software Maintenance with the initial license
acquisition of each program acquired. The initial period of Software
Maintenance can be extended by the purchase of a renewal option that is
available.

While your Software Maintenance is in effect, IBM provides you assistance
for your routine, short duration installation and usage (how-to)
questions; and code-related questions. IBM provides assistance via
telephone and, if available, electronic access, only to your information
systems (IS) technical support personnel during the normal business hours
(published prime shift hours) of your IBM support center. (This
assistance is not available to your end users.) IBM provides Severity 1
assistance 24 hours a day, every day of the year. For additional
details, consult your IBM Software Support Guide at

Software Maintenance does not include assistance for the design and
development of applications, your use of programs in other than their
specified operating environment, or failures caused by products for which
IBM is not responsible under this agreement.

For more information about the Passport Advantage Agreement, visit the
Passport Advantage Web site at

On/Off capacity on demand

To be eligible for On/Off Capacity on Demand pricing, customers must be enabled for temporary
capacity on the corresponding hardware, and the required contract  Z125-6907, Amendment for
iSeries and pSeries Temporary Capacity On Demand  Software  must be signed prior to use.

The prices provided in this announcement are suggested retail prices for the U.S. only and are
provided for your information only. Dealer prices may vary, and prices may also vary by country.
Prices are subject to change without notice. For additional information and current prices, contact
your local IBM representative.

The Americas Call Centers, our national direct marketing organization,
can add your name to the mailing list for catalogs of IBM products.

Note:
Shipments will begin after the planned availability date.

Trademarks

i5/OS, Informix, Domino, iSeries, and IBMLink are trademarks of
International Business Machines Corporation in the United States or other
countries or both.

Passport Advantage, Tivoli, z/OS, DB2, AIX, OS/400, the e-business logo,
zSeries, SP2, POWERparallel, pSeries, OS/390, S/390, eServer, SystemPac,
and NetView are registered trademarks of International Business Machines
Corporation in the United States or other countries or both.

Intel is a trademark of Intel Corporation.

Microsoft and Windows are trademarks of Microsoft Corporation.

UNIX is a registered trademark of the Open Company in the United States
and other countries.

Linux is a trademark of Linus Torvalds in the United States, other
countries or both

Other company, product, and service names may be trademarks or service
marks of others.